Neo-Neon Holdings (TPE:911868) GF Value Rank : 9 (As of Jun. 04, 2024)

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What is Neo-Neon Holdings GF Value Rank?

Neo-Neon Holdings has the GF Value Rank of 9.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.

Competitive Comparison of Neo-Neon Holdings's GF Value Rank

For the Electrical Equipment & Parts subindustry, Neo-Neon Holdings's GF Value Rank, along with its competitors' market caps and GF Value Rank data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Neo-Neon Holdings's GF Value Rank Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Neo-Neon Holdings's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Neo-Neon Holdings's GF Value Rank falls into.

Neo-Neon Holdings GF Value Rank Related Terms

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Neo-Neon Holdings (TPE:911868) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Neo-Neon Holdings Ltd (TPE:911868) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

01868:Hong Kong

Address

188 Des Voeux Road Central, Unit 2101, 21st Floor, Golden Centre, Hong Kong, HKG

Website

http://www.neo-neon.com

Neo-Neon Holdings Ltd is a manufacturer and distributor of LED decorative lighting products. The company's product portfolio is divided into LED decorative lighting, Commercial lighting, Professional lighting, Professional architectural lighting, Industrial lighting, Landscape lighting, and other products. Its segments include the PRC lighting segment, which consists of research and development, manufacture of lighting products in China, and distribution of lighting products in China and overseas; and the USA lighting segment consists of the provision of lighting solutions and trading of lighting products in the USA. Its geographical segments include North America, which generates the vast majority of the company's revenue; Europe; The PRC; Asia (excluding the PRC); and Other countries.

Neo-Neon Holdings (TPE:911868) Headlines

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